Busted: Bankers and The Global Economy

October 5, 2007

Housing Weakness Continues

“The housing sector had continued to weaken; indeed, with subprime mortgage markets increasingly impaired and problems becoming evident in some other segments of mortgage markets, the contraction in residential construction seemed likely to be even deeper than we had previously anticipated. And increased resistance on the part of investors to some of the terms on the loans and bonds that were backing leveraged buyouts was a sign that a rethinking of risk exposures might be spreading beyond mortgage markets. But output overall still appeared to be expanding at a moderate pace; jobs and incomes, although rising less rapidly than before, were still advancing reasonably well.”
~ Vice Chairman Donald L. Kohn

Economic Outlook, October 5, 2007

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